Sales, revenue and costs Flashcards
1
Q
What is sales revenue ?
A
The value of sales during a trading period.
2
Q
How do you calculate sales revenue ?
A
Sales revenue= Price x Quantity sold
3
Q
What is sales volume ?
A
The amount sold by a business in a period.
4
Q
What are variable costs ?
A
Costs that change directly with the output produced
VC= Quantity x Price per unit
5
Q
What are fixed costs ?
A
Costs that do not change with output.
6
Q
How to calculate profit/loss
A
Profit/loss= Total revenue - Total costs
7
Q
How to calculate average costs
A
Average cost = Total costs / Output
